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Shell ditches plans for Sorrento plant

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SORRENTO - Shell announced Thursday they would not pursue plans to build a $12.5 billion gas to liquids facility in Ascension Parish.

The company said they made the decision due to concerns about long-term oil and gas prices as well as the development costs of the project.

The proposed natural gas facility would have produced 140,000 barrels a day, and created 740 direct jobs as well as thousands of indirect jobs. Shell held an event at the Lamar Dixon Expo Center in October to gather public feedback about their plans.

The state had offered a $112 million incentives package to get the plant to locate in Louisiana. Secretary Stephen Moret with the Louisiana Economic Development called the announcement "very disappointing."

"Earlier this year, outgoing Shell CEO Peter Voser publicly identified North America as a region of opportunity for the company due to the ongoing shale gas revolution, and he identified GTL as an option for capitalizing on this North America opportunity," Moret said. "Unfortunately, his more recent public comments have suggested that Shell has more investment opportunities around the world than it has capital to fund them."

News 2 will have more on what this means for Ascension Parish tonight starting at 4 p.m.